Solution Sheet

Commercial Lending Solution

Jack Henry VIP Member

The commercial lending business has witnessed exceptional growth over recent years. Banks are
struggling to keep pace with this growth due to a disjointed commercial loan origination process which
is leading to high operating costs and making them less competitive with emerging challenges from
alternate lenders. Commercial lending is associated with complex risk calculations, intensified
regulatory oversight and multi-level stakeholder collaboration.
 Overview

Banks & Financial Institutions, including Credit Unions, leverage

Core Banking Systems such as Jack Henry Silverlake, CIF 20/20, Core
Director or Symitar to maintain the Customer Accounts, Loan Accounts
Banks are finding it
and Loan Transactions. However, the overall loan origination process hard to make
remains highly manual and paper driven. Some banks have commercial risk
automated loan origination partially using standalone application for management a holistic
spreading, workflow, document management etc but the unified end- process across various
product types,
to-end loan origination is missing. Therefore, it's imperative for lenders
departments,
to optimize the complete lending lifecycle, from origination to regulations as well as
disbursement and even beyond. internal and external
stakeholders.

Investment in automating loan origination process and tight integration with core banking system like
Jack Henry will result in improved efficiencies, faster decision making while ensuring compliance.
Technology can drive this transformation by enabling smart automation, seamless collaboration,
straight through processing and effective integration.

Newgen Commercial Lending Solution

Newgen Commercial Lending Solution automates and streamlines the end-to-end lending cycle from
prospecting and origination to underwriting, disbursement and servicing for all loan types. The
solution is built on a business process management framework to enable credit origination, approval
and monitoring in a paperless and electronically driven workflow environment.

The solution allows handling all kinds of risks associated

with commercial loans through dynamic, model driven risk
calculators at every stage. With highly optimized decision
workflows, automated covenant and collateral tracking and
comprehensive reporting, it strikes the perfect balance Newgen-Jack Henry VIP Partner
between risk management and operational swiftness. Newgen provides seamlessly
Integration with bank's third party and legacy applications integrated solutions with Jack Henry
such as Core Banking Solutions, Rating applications, Credit for Commercial Lending which
Bureau systems etc. ensure reduced cycle times and best in reduces the friction in the
class customer service. Commercial Loans Processing.
Newgen's experience and tested
Exception Management is an integral part of Commercial adaptors with Jack Henry core
LOS for ongoing proposal exceptions and post banking systems ensure rapid
disbursement monitoring exceptions. The solution supports deployment with first-time-right
event based & rules based ticklers for exceptions captured approach without any research and
on financial and non-financial covenants eliminating the
need for manual tracking and follow ups. development efforts for creating the
connections.

Stakeholders including Credit Analyst, Risk Manager, Credit

Admin and Client Relationship Manager experience a surge
in productivity with Newgen Commercial Lending Solution.
 Unified Platform for Commercial Lending

Multi-Channel Initiation
Web Third
Branch Mobility Party Agent
Portal

Construction
Leasing
Commercial Hire Purchase
SBA Loans
Real Estate Loan

Commercial
and Servicing all lending Other Loans
Institutional products
Loan on a single platform

Configurable BPM Framework

Integration Layer

Jack Henry Rating Bureaus & Other

Core Banking CRM Third Party Systems
System
System Agencies

Platform USP - Integration Capability

The Platform integrates seamlessly with Jack Henry Core Banking

System allowing -
Searching and auto population of client details

De-dupe check for existing clients

Capturing details for new customers and auto-creation in Jack

Easy Search & Auto Population
of Information from Jack Henry
Henry Core
Peer group comparison for similar industries General information including
Automated customer account & loan account in Jack Henry Core address, owners, directors,
Banking System guarantors etc.
Automated loan disbursements and escrow arrangements Facilities & limits
Accounts & utilization
The solution also integrates seamlessly with other applications Collaterals
such as CRM, Spreading tools, Pricing Applications, Bureaus and Profitability (client & group)
agencies (OFAC, Equifax, Transunion, Experian, FICO, Core Logic, Exposure (client & group)
UCC, Census Tract, NAICS etc.), Documentation Provider to
provide a single and unified interface for the lenders. This helps
banks achieve higher productivity, reduce turnaround time,
manage risks and reduce costs substantially.
 Disburse Loans at Accelerated Pace

Each loan type (C&I, CRE, Construction, SBA, Agriculture, Leasing etc.) is managed with end-to-end
lending cycle from prospecting, document capture, digitization, origination, approval, closing & funding
to servicing to ensure paperless processing of credit application in a workflow environment supported
by a robust built-in document management system. The solution also adapts to unique loan products
requirements of the banks with embedded rules engine.

Lead Management Document Checklist

Lead Capture Lead Assignment Product Setup
Tracking & Follow Up Lead Conversion Pricing Setup
Application Processing
360 Degree Customer View Collateral Capture
All Customer Accounts Relationship Details Integration with External Credit Bureaus
Group & Sister Concerns
Service Request Management

OOrig
n g rigin
ecti inaat
tiioon
p
r os n
P

Change in
Financial
Pricing Spreading
Change in Credit Analysis
Scoring and
Collaterals
Rating
Servicing

Rescheduling
Risk
Restructuring
Management
Review Renewals
Credit Automation
Memo

Generation
Decision and
Approvals

Account Monitoring Offer Letter Generation

Account Profitability Appeals

Covenant Monitoring Customer Creation and Loan

Portfolio Monitoring Booking in Jack Henry
Business Activity Monitoring
Funding
Dashboards
Future Drawdowns
Reports
 Solution Highlights

Integration with Jack Henry Core System - Capture details for new customers, automate customer &
loan account creation in core system, with easy search and auto population of client details from the core

Connecting Disparate Applications - The solution also integrates seamlessly with other applications
such as CRM, Spreading tools, Pricing Applications, Documentation Provider to provide a single and
unified interface for the lenders

Prospecting and Lead Generation - Efficient lead management and handling of cross and up-sell
opportunities

Credit Application Management - Seamless on-boarding with several configurable templates for
customer and product specific data capture

Credit Analysis and Underwriting - Comprehensive credit assessment tools that take into account
financial information, ratio analysis, account conduct and pricing

3600 Risk Management - Complete due diligence through Peer Group Analysis, Trade Checks, real-time
pipeline view, automated rules & standardized processes

SWOT Analysis - Comprehensive evaluation of a deal through a detailed analysis of various

internal/external ratings

Document Management - Generate Loan Package with commercial loan documents and security
instruments in pre-defined bank specific templates

Collateral Management - Unified workflow around releasing, updating, valuing and moving collaterals
and other linked processes

Collections and Provisioning - Efficient management of delinquent accounts and linked accounts
through incessant follow-ups and history logs

Portfolio Management - Profitable risk portfolio management through covenant monitoring, account
conduct, review/renewals and diversification

Credit Risk Reporting - Configurable functional, operational and investigative reports & dashboards

Servicing and Restructuring - Facilitates asset management, branch/trade referrals, partial

settlements, credit extensions and foreclosures

The Newgen Advantage

Faster time to market with ready-made solution

accelerator

Leverage existing investments through seamless

integrations with Jack Henry Core Banking System

Manage change through configurable rules based

framework
 BPM based lending– A Paradigm shift in Commercial Lending

In today's rapidly changing business landscape with continuously evolving market needs and regulatory
compliances, it is almost impossible to define an ideal solution architecture. What might seem ideal
today may not remain so in the next 12-18 months. Thus, financial institutions are seeking solutions with
the most adaptable architecture, one which can be configured for today and has the ability to adapt in
future. In such a scenario, solution accelerators built on a Business Process Management (BPM) platform
can serve the purpose.

Newgen Commercial Lending solution combines industry best practices with rich domain expertise
required in a robust commercial lending application. The solution accelerator allows financial institutions
to avail the benefits of both the worlds (Buy + Build), i.e. they get a readymade solution which is domain
rich and can be deployed on day one along with the benefits of seamlessly enhancing its capabilities
through a configurable BPM framework.

This allows banks to buy the solution 'out of the box' and then configure it to meet 100% of their
requirements. It helps in drastically reducing the time to roll out a commercial lending product in the
market as banks can avail the existing functionalities of the accelerator and identify the gaps which are
fulfilled through the configuration layer supported by various components such as Rules Engine, Process
Modeler, GUI designer, MDM & Integration adaptors.

Commercial Lending Solution Advantages of

Solution Accelerator
Accelerator built on BPM Framework

Solution Accelerators
are ready to use, tried-
and-tested domain-
specific business
solutions
Business Rules
Process Modeler Form Designer Engine

Standard functionality
Designing Business Designing Business Automation of
like a packaged
Specific Workflow Specific Forms Bank Rules, Policies
application but not a
& Compliances
coded Black Box

 Built on a configurable
BPM framework
Master Data Business Activity Integration
Management Monitor Adaptors  Tools to configure bank
Building Dashboards Integration with specific requirements -
Defining Product
& Reports Existing/ Core Apps Forms, Processes, Rules,
Parameters
Masters, Reports and
Integration

 Best of both worlds (buy

+ build) - ready to use
Document Management System & quickly build for bank
specific business
challenges
 Business Benefits

End-to-End Risk Management - With methodical portfolio monitoring, automated tracking of

collaterals and covenants, comprehensive reporting and standardized lending processes, leading global
organizations are realizing the benefits of end-to-end risk management delivered by Newgen
Commercial Lending solution

Greater Selling Opportunities - Gain better insights into high profile accounts to enhance profitability,
create cross-sell opportunities and underwrite loans competitively. The system ensures all touch points
with the customers are streamlined to power strong customer relationships

Unprecedented Operational Efficiencies - Eliminate duplicate data entry, reduce error rates and policy
exceptions, enable dynamic staffing, business rules driven underwriting and documentation, and
streamline approval cycles for faster transactions. The resultant speed creates a distinct competitive
advantage in a fiercely fought marketplace

Compliance and Process Standardization - Close monitoring of process Service Levels across the
lending lifecycle–from initiation to disbursement ensures compliance and risk optimization. The system
ensures that all loan documents and covenants are tracked and reviewed automatically in accordance
with credit policy and compliance. It allows generation of custom reports for increased oversight

Sales & Marketing

 Improve Customer Acquisition
 Increase Cross-Selling
Opportunities
 Reduce Income Leakages Operations
 Reduce Operating Costs
 Improve Efficiency
 Transparency & Traceability
in Lending Cycle
Credit & Risk  Reduce Operational Risks
 Improve Due Diligence
 Eliminate Non Compliance
 Reduce Loan Risk

Senior Management
 Ease of Portfolio Management
 Improve Decisions
Technology  Reduce Business Risk
 Robust Framework and Modular
Platforms
 Reduce Technological Risk
 Increase Digitization

Increase Reduce
Profitability Business Risk
Business
Value
Increase Increase
Customer Satisfaction Business Agility
About Newgen
Newgen Software is a leading global provider of Business Process Management (BPM), Enterprise Content Management (ECM),
Customer Communication Management (CCM) and Case Management solutions with a global footprint of 1300+ installations in
61+ countries with large, mission critical solutions deployed at the world's leading Banks, Insurance firms, BPO's, Healthcare
Organizations, Government, Telecom Companies & Shared Service Centers.

Newgen's Quality Systems are certified against ISO 9001:2008 and Information Security Standard, ISO 27001:2013. Newgen has
been assessed at CMMi Level3.

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